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Why Are People Investing In Preconstruction Real Estate?
Investment in preconstruction real estate has been around for decades, but not until recently has it received this much attention. This is especially true in Orlando, Florida and other resort areas. There are many theories attempting to explain why the investment real estate market has seen so much growth. The truth is, several factors fuel this explosive market.
The first factor is that the US dollar is weak right now. This factor is prompting foreign investors to purchase US land as an investment. In turn, these foreign investors are not only investing in the real estate but in the currency market as well.
The second factor is high fluctuation in the stock market. Stock values vary more frequently than ever before. This forces the average stock market investor to become more involved in their investing strategies to turn a profit. Many people do not have time for hands-on investing. This is bringing investors to preconstruction real estate because it is one of the most hands-off forms of investment.
The third factor is the Iraq war. Americans do not feel as safe leaving the country on vacation. Since this dilemma exists, Orlando, even Florida as a whole, is seen as the ideal vacation spot for any family. This has driven even more tourism dollars into the thriving Orlando, Florida economy. Additionally, an investment in preconstruction real estate is a definitive statement about confidence in our nation's economy. When buying preconstruction real estate, you are investing in the concept that our economy will be in even better shape whenever it comes time to flip the property. You are also investing in an American project and fueling our nation's economy.
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All these factors have pushed Orlando and other preconstruction markets to unprecedented highs over the last four years. These factors have also made many part time and full time investors very wealthy.
Why isn’t everyone doing it?
You are probably asking yourself “If there is so much money in preconstruction real estate, why isn’t everyone doing it?” This answer is simple; there are not many preconstruction opportunities, and when opportunities do arise, they are sold out in days, if not hours. Also, serious investors are going after available preconstruction opportunities so aggressively that developers are finding that they don’t have to advertise to sell their property. In fact, it is not uncommon for a developer to release all of the project’s preconstruction units at once. In the time span of one workday, it is not uncommon to see all available units of a preconstruction offering reserved.. Preconstruction real estate is booming, and this is your opportunity to take advantage of these great investment opportunities.
The City of Orlando
You can’t help but notice that when you drive through Orlando FL, every last square inch of land is being developed into some sort of commercial or tourism related property. This city's growth comes with great excitement and anticipation, whether it’s a new shopping complex built around the booming supermarket chain Publix© or a high end gated community packed with Condos. There is no question about it this fantastic growth. Orlando is going through a radical change becoming the “Tourism capital of the World.”
Orlando has long been the home of some of the best amusement parks in the world. It is now being looked at as a prime real estate investment area. Amazingly, the real estate market is still growing. This market is growing so rapidly it’s not unlikely to buy a house in preconstruction or phase one construction and sell it a few months later for a large profit. Florida had the second highest average property value appreciation rate nationally in the last quarter of 2005, with growth of 25.2 percent*. Since these opportunities now exist in Orlando, investors are in search of preconstruction investment properties. These properties can be bought cheap and sold high. Orlando has the highest population of preconstruction opportunities, and also the highest profit margin for preconstruction properties nationally.*
*Source: Office of Federal Housing Enterprise Oversight
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